The Phoenix Mills CAPEX surged on 217% and Revenue increased slightly on 0.95%
13-05-2016 • About The Phoenix Mills (
$PHOENIXLTD) • By InTwits
The Phoenix Mills reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The Phoenix Mills has high CAPEX intensity: 5 year average CAPEX/Revenue was 82.7%. At the same time it's a lot of higher than industry average of 8.2%.
- CAPEX is quite volatile: ₹3,802m in FY2016, ₹1,200m in FY2015, ₹15,515m in FY2014, ₹5,077m in FY2013, ₹6,640m in FY2012
- The company has business model with average profitability: ROIC is 10.2%
- It operates with high leverage: Net Debt/EBITDA is 4.7x while industry average is 6.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The Phoenix Mills's Revenue increased slightly on 0.95%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.1 pp from 8.2% to 9.3% in FY2016.
Net Income margin increased on 2.7 pp from 2.1% to 4.9% in FY2016. Net Income margin followed a declining trend at -6.0 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 22.8%. CAPEX/Revenue dropped on 85.3 pp from 108% in FY2013 to 22.8% in FY2016. It's average level of CAPEX/Revenue for the last three years was 45.7%. CAPEX as a % of Revenue declined at -39.2 pp per annum in FY2012-FY2016.
Return on investment
The company operates at low ROIC (10.2%) and ROE (4.6%). ROIC showed almost no change in FY2016. ROE increased on 2.5 pp from 2.1% to 4.6% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.7x and Debt / EBITDA is 4.9x. Net Debt / EBITDA surged on 0.3x from 4.3x to 4.7x in FY2016. Debt surged on 15.0% while cash surged on 114%.
The Phoenix Mills has short term refinancing risk: cash is only 37.9% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 10.9x and P/E 60.0x while industy averages are 17.8x and 21.9x. The Phoenix Mills's EV/(EBITDA-CAPEX) is 20.9x with the industry average at 22.8x.
Financial and operational results
The Phoenix Mills ($PHOENIXLTD) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,945 | 4,699 | 14,485 | 16,533 | 16,690 | 0.9% |
| EBITDA | 2,159 | 2,643 | 6,792 | 7,632 | 7,928 | 3.9% |
| Net Income | 1,056 | 842 | 1,285 | 354 | 815 | 130.2% |
Balance Sheet
|
|---|
| Cash | 988 | 286 | 543 | 904 | 1,935 | 114.1% |
| Short Term Debt | 2,546 | 5,215 | 5,733 | 5,833 | 5,112 | -12.4% |
| Long Term Debt | 14,138 | 16,741 | 28,328 | 28,190 | 34,004 | 20.6% |
Cash flow
|
|---|
| Capex | 6,640 | 5,077 | 15,515 | 1,200 | 3,802 | 216.8% |
Ratios
|
|---|
| Revenue growth | 87.7% | 19.1% | 208.3% | 14.1% | 0.9% | |
| EBITDA growth | 43.0% | 22.4% | 157.0% | 12.4% | 3.9% | |
|
|---|
| EBITDA Margin | 54.7% | 56.2% | 46.9% | 46.2% | 47.5% | 1.3% |
| Net Income Margin | 26.8% | 17.9% | 8.9% | 2.1% | 4.9% | 2.7% |
| CAPEX, % of revenue | 168.3% | 108.0% | 107.1% | 7.3% | 22.8% | 15.5% |
|
|---|
| ROIC | 4.9% | 5.4% | 11.1% | 10.0% | 10.2% | 0.2% |
| ROE | 6.2% | 4.8% | 7.4% | 2.1% | 4.6% | 2.5% |
| Net Debt/EBITDA | 7.3x | 8.2x | 4.9x | 4.3x | 4.7x | 0.3x |
Peers in Realty
Below you can find The Phoenix Mills benchmarking vs. other companies in Realty industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sspdl ($SSPDL) | 16.2% | -11.8% | -43.4% | 326.1% | - |
| Orbit Corporation ($ORBITCORP) | -4.2% | -21.9% | -88.0% | 275.1% | - |
| Ajmera Realty & Infra India ($AJMERA) | 21.3% | -61.7% | -1.8% | 109.9% | - |
| Prajay Engineers Syndicate ($PRAENG) | -21.1% | 42.0% | -30.1% | 62.8% | - |
| Godrej Properties ($GODREJPROP) | - | 34.7% | 13.7% | 56.3% | 35.9% |
| |
|---|
| Median (34 companies) | -3.6% | 3.4% | -4.5% | 11.4% | 44.8% |
|---|
| The Phoenix Mills ($PHOENIXLTD) | - | 19.1% | 208.3% | 14.1% | 0.9% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Godrej Properties ($GODREJPROP) | 24.9% | 33.3% | 28.9% | 19.4% | 14.7% |
| |
|---|
| Median (1 company) | 24.9% | 33.3% | 28.9% | 19.4% | 14.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hubtown ($HUBTOWN) | 53.3% | 72.4% | 67.6% | 82.4% | - |
| Housing Development & Infrastructure ($HDIL) | 75.8% | 40.6% | 102.5% | 78.9% | - |
| Tci Developers ($TCIDEVELOP) | - | - | - | 75.9% | - |
| Orbit Corporation ($ORBITCORP) | 42.4% | 53.3% | -127.2% | 69.8% | - |
| Oberoi Realty ($OBEROIRLTY) | 59.3% | 58.9% | 54.5% | 56.4% | 47.7% |
| |
|---|
| Median (43 companies) | 19.4% | 13.4% | 19.8% | 19.4% | 22.0% |
|---|
| The Phoenix Mills ($PHOENIXLTD) | 54.7% | 56.2% | 46.9% | 46.2% | 47.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Prozone Intu Properties ($PROZONINTU) | - | - | - | 89.5% | - |
| Ashiana Housing ($ASHIANA) | - | - | - | 26.7% | - |
| Brigade Enterprises ($BRIGADE) | 45.7% | 10.7% | 17.0% | 18.5% | - |
| Prestige Estates Projects ($PRESTIGE) | 37.7% | 30.2% | 18.8% | 11.6% | - |
| Parsvnath Developers ($PARSVNATH) | 15.9% | - | 11.6% | 10.6% | - |
| |
|---|
| Median (30 companies) | 4.7% | 2.3% | 3.5% | 2.3% | 2.3% |
|---|
| The Phoenix Mills ($PHOENIXLTD) | 168.3% | 108.0% | 107.1% | 7.3% | 22.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ahluwalia Contracts (India) ($AHLUCONT) | -3.2% | -15.8% | 5.6% | 21.2% | - |
| Poddar Developers ($PODDARDEV) | 3.9% | 2.6% | 12.9% | 19.1% | - |
| Lancor Holdings ($LANCORHOL) | 18.0% | 11.6% | 19.5% | 17.7% | - |
| Mahindra Lifespace Developers ($MAHLIFE) | 10.4% | 11.7% | 6.6% | 14.9% | 4.6% |
| Sobha Developers ($SOBHA) | 18.8% | 16.7% | 14.6% | 12.7% | - |
| |
|---|
| Median (50 companies) | 5.9% | 4.6% | 5.6% | 6.8% | 5.3% |
|---|
| The Phoenix Mills ($PHOENIXLTD) | 4.9% | 5.4% | 11.1% | 10.0% | 10.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| D B Realty ($DBREALTY) | 13.2x | 135.4x | 14.0x | 54.8x | - |
| B.L.Kashyap And Sons ($BLKASHYAP) | 8.2x | 5.8x | 12.7x | 40.1x | - |
| Vipul ($VIPUL) | 0.7x | 3.0x | 10.8x | 26.0x | - |
| Ansal Properties & Infrastructure ($ANSALAPI) | 12.8x | 11.9x | 11.4x | 16.6x | - |
| Srs Real Infrastructure ($SRSREAL) | 11.7x | 10.0x | 12.9x | 14.7x | - |
| |
|---|
| Median (37 companies) | 5.1x | 4.8x | 5.0x | 4.0x | 0.5x |
|---|
| The Phoenix Mills ($PHOENIXLTD) | 7.3x | 8.2x | 4.9x | 4.3x | 4.7x |
